Explain the similarities and differences between a voluntary export restraint and an embargo. (1 point)
• Both voluntary export restraints and embargoes are typically implemented in response to changes in political situations. However, voluntary export restraints open up trade, while embargoes restrict trade.
• Both voluntary export restraints and embargoes reduce trade and are typically implemented in response to changes in political situations. However, embargoes are far more strict, since they cutoff trade completely.
• Both voluntary export restraints and embargoes are typically implemented in response to ) changes in political situations. However, voluntary export restraints restrict trade, while embargoes open up trade.
• Both voluntary export restraints and embargoes increase trade and are typically implemented in response to changes in political situations. However, embargoes are far less strict, since they open up trade completely.
The correct answer is:
• Both voluntary export restraints and embargoes are typically implemented in response to changes in political situations. However, voluntary export restraints open up trade, while embargoes restrict trade.